Measuring the Relationship Between Service Quality and Customer Satisfaction in the Hotel Industry

Abstract

with the development of hotel sector, service quality and customer satisfaction have become the core tools for gaining a competitive advantage, since they are the prerequisites for customer loyalty and higher profitability. Therefore, this study is based on SERVQUAL scale to measure the relationship between service quality and customer satisfaction from the perception of hotel guests in Changsha city, Yuelu District. By using a convenience sampling method, the questionnaire was distributed to 200 respondents in 6 hotels. However, data was collected from 167 completed questionnaires. The data were analyzed by Statistical Package for Social Sciences (SPSS) version 25 and Smart PLS 3. Reliability and validities of latent variables were confirmed. In this study, structural equation modeling (SEM) was used to investigate the relationship between five exogenous variables namely; tangibility, reliability, responsiveness, assurance, and empathy, and an endogenous variable that is customer satisfaction. The findings revealed that all five dimensions of service quality have a positive relationship with customer satisfaction. It also showed that assurance has the most significant factor by hotel customers. This was followed by empathy and then responsiveness while tangibility and reliability as two service quality dimensions have no significant impact on customer satisfaction. This study advances our understanding of the relationship between service quality and customer satisfaction in the hotel industry. Hotel managers can gain benefits by understanding how service quality can achieve a high degree of customer satisfaction, and thus leads to hotel profitability.